September 15, 2014


Japan to become first market for Charoen Pokphand's poultry shipments




With Japan as the first market for the poultry firm's shipments, PT Charoen Pokphand Indonesia (CPIN) is planning to expand internationally by exporting processed chicken to other countries including Singapore, Cambodia, Myanmar, Laos and Vietnam.


It may also reach out to the Middle East, particularly Saudi Arabia, as well, according to CPIN's vice president for feed technology, Desianto Budi Utomo.


"Japan may serve as a hub to distribute our products to other nations. If our exports to Japan succeed, it will be much easier for us to enter other markets," Utomo said. "At first, we will try to gain foothold in the Japanese market, therefore we will begin with a moderate target and (will) increase the target gradually in the future."


The initial phase of exports to Japan may begin as soon as the fourth quarter of 2014, with Charoen Pokphand seeking to secure around US$20 million.


Due to rising demand from overseas buyers, CPIN may raise production by 20% in the future, according to Utomo.


Indonesia's business players may potentially occupy 10% of Japan's overall poultry market of US$2 billion yearly, sources said.


In the meantime, Indonesia's poultry producers are still waiting for results of a recent audit carried out on chicken processing facilities by Japanese veterinary officials. Previously, CPIN had ceased overseas sales in 2004 following a widespread avian flu outbreak which affected the domestic poultry breeding industry.